A "benchmark" isn't a magic number. It's context that helps you decide whether you're behind on occupancy, leaving money on the table on ADR, and where dynamic pricing should focus. The best benchmarks are specific to your market and your comp set.
1) What to benchmark (and how often)
Don't benchmark everything. Start with a set that leads to actions:
- RevPAR, ADR, occupancy (weekly, across 30/60/90-day horizons).
- Pickup and pace (early signals).
- Channel mix (direct vs OTA and net impact).
- Comp set indices: MPI/ARI/RGI.
If you need a refresher, start with RevPAR, ADR, and occupancy.
2) Build a comp set that’s useful (not just the closest 5)
A good comp set:
- shares similar location/access;
- matches your positioning and target segment;
- competes for the same demand (not just geography).
See a practical process in competitor analysis and comp sets.
3) Build a fair YoY baseline
The most common issue is comparing non-comparable days. For a fairer baseline:
- compare by day of week, not just date;
- flag events and holidays (they change the pattern);
- track weekends separately from weekdays.
With a baseline, dynamic pricing becomes easier: you know whether you're ahead or behind the typical pattern and what action is reasonable.
4) Turn benchmarks into targets that drive decisions
Avoid targets like "hit X ADR" without context. More useful targets:
- improve ARI while keeping MPI stable (pricing/positioning);
- improve MPI while keeping ARI stable (distribution/availability);
- improve RGI through a mix of both.
This helps you choose whether to focus first on pricing framework (guardrails) or on demand and channels (direct strategy).
5) How Sigma Revenue supports benchmarking and competitor context
Sigma Revenue simplifies benchmarking with Competitor Data (for comp sets) and Analytics (to track trends and actions). That gives dynamic pricing a measurable context, not just gut feel.
Want a quick review of which benchmarks matter for your hotel? Contact us.